Both have moved crypto prices in the past, and with sentiment low and altcoins under pressure not seen before in this cycle, market participants will be closely watching this coming week. According to them, that increase led to a dilution of liquidity, as it had to be spread across a wider set of assets, leaving smaller tokens with little, if any, trading activity and weaker price support. Relative to the previous cycle, current conditions are slightly more severe though. During the last downturn, about 38% of altcoins fell to or near all-time lows before establishing a base and reversing higher.
Over 40% of Altcoins Near All-Time Lows, Worse Than Last Bear Market
Within this period, 22 altcoins have been in profit, positioning them as key assets drawing investor attention. “In the context of broad altcoin weakness, rising whale outflows in LINK may indicate growing interest from certain large players, possibly in anticipation of future market moves. However, caution is warranted, as other, more pronounced accumulation episodes during this correction failed to change the current trend,” the analysts stressed. Activity among large holders of Chainlink (LINK) has intensified amid broader weakness across the altcoin market. VeChain is down approximately 98% from its record price and is hovering just above an all-time low.
More Than 40% Of Altcoins Are Hitting Rock Bottom — And Experts Say It’s Worse Than The Last Crash
The crypto market is under pressure as geopolitical tensions and volatility weigh on risk assets, with altcoins taking the hardest hit. Over 40% of altcoins are now at or near all-time lows, exceeding the 38% seen in the last bear market. Oversupply and liquidity dilution, more than 47 million tokens across chains like Solana, Base, and BNB Smart Chain, make altcoins fragile. While underperformance is widespread, it also creates opportunities for investors who can identify strong, resilient projects with long-term potential.
CUSIP Database provided by FactSet Research Systems Inc. SEC fillings and other documents provided by Quartr.© 2026 TradingView, Inc. However, this accumulation may reflect a short-term relief phase rather than a confirmed reversal.
The current figure exceeds that level by 2%, highlighting deeper market stress. Trader behavior with altcoins shows the crypto market is still chosen for risky directional bets, though most are happening in the background, and the main focus is on Bitcoin. As of March 26, the altcoin season index moved up to 51 points, with almost a perfect balance between BTC and other assets. The major risk for those tokens is that short positions may be liquidated by deliberate targeting. Most of the shorted tokens show overall bearish signals, making traders confident in shorting.
- Too many assets fight for liquidity that has become more selective.
- That structural problem is now showing up in the numbers in a dramatic way.
- The crypto market has never had so many assets to absorb.
- Do your own research before taking any investment decisions.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions. The Crypto Fear and Greed Index is standing at 8, showing “extreme fear.” The metric has been in that zone for nearly two months, with the period coinciding with reduced participation and lower conviction among traders. This page lists the top 100 cryptocurrency coins by market cap.
Bitcoin has fallen roughly 45% from its all-time high — painful, but modest compared to what has happened further down the market cap rankings. That structural problem is now showing up in the numbers in a dramatic way. Data from CryptoQuant shows that over 40% of all altcoins are currently trading at or near their all-time lows.
Just like the shorted tokens, those assets were trading near all-time lows, expecting an eventual breakout. Long positions may face smaller risks, as the assets have mostly traded sideways over the past months. Altcoins are still inviting risky traders to take strong directional bets. According to Alphractal data, there are clear-cut categories of altcoins with minimal long/short ratios and a predominance of short positions. Geopolitical tensions and macroeconomic volatility weigh on all risky assets, but altcoins bear the brunt more violently than Bitcoin or large caps. This retracement phase of altcoins is harsher than that of the last crypto bear market.
The monthly average outflow among the top 10 transactions is also showing growth. Since mid-February, it has climbed from around 2,000 LINK to nearly 2,600 LINK per day.
Especially since the price action remains under a descending resistance line. Read the best crypto stories of the day in less than 5 minutes. what is strovemont capital As a reminder, in early 2026, Santiment recorded minimal interest in altseason.